GREECE OFFERS TO PAY MORE FOR PEACE-KEEPING AS FIFTH COMMITTEE CONSIDERS CONTRIBUTIONS
Press Release
GA/AB/3067
GREECE OFFERS TO PAY MORE FOR PEACE-KEEPING AS FIFTH COMMITTEE CONSIDERS CONTRIBUTIONS
19960329 Draft Text Lowering Ukraine's Dues Discussed; USG for Administration and Management To Address Committee TuesdayGreece has decided voluntarily to increase its annual contribution for peace-keeping effective next July, after considering the United Nations financial crisis and appeals from Secretary-General Boutros Boutros-Ghali, that country's representative told the Fifth Committee (Administrative and Budgetary) this morning. The Committee considered a Greece-Ukraine-sponsored draft resolution that would have the General Assembly relocate Ukraine to a group of Member States charged with lower peace-keeping dues.
The decision would move Greece from group (c) to group (b) of States in the categories found in the special scale for sharing out peace-keeping costs, its representative said. The move should be gradual since it would create a 500 per cent increase in that country's peace-keeping dues and to minimize the effects on its economy. Greece has been in group (c) since the special scale for peace-keeping funding was adopted in General Assembly resolution 3101 (28) of December 1973.
The 1973 resolution divided the United Nations membership into four groups for apportioning peace-keeping expenses. Those in group (d) would pay 10 per cent of their regular budget rates, group (c), 20 per cent, and group (b), 100 per cent. In group (a) are the permanent Security Council members, which would pay 100 per cent plus what is left unapportioned. The rates are further adjusted in proportion to States' regular budget rates.
Greece's decision had opened a new option for his country, Ukraine's representative said, introducing today's draft resolution. Member States should consider positively the possibility of simultaneous and gradual transition for Ukraine to group (c), on a step-by-step basis and without financial implications for other Member States. Ukraine's transition would not be completed until the year 2000. His country had been placed in group
Fifth Committee - 1a - Press Release GA/AB/3067 51st Meeting (AM) 29 March 1996
(b) by its previous membership in the former Soviet Union. Since its independence, it was the only former Soviet republic and Eastern European State still in group (b).
Ukraine is assessed at 1.1400 per cent for the regular budget and 1.1438 per cent for peace-keeping in 1996. If it is moved to group (c), it will be assessed at about a fifth of its regular budget rate. Greece, assessed at 0.3800 per cent for the regular budget and 0.0763 per cent for peace-keeping will be charged 100 per cent if it is moved to in group (b).
The European Union, speaking through Italy's representative, expressed satisfaction with the decision of Greece, which had followed the precedents of Spain and Portugal. It, however, stressed the need to overhaul the outdated scheme for assessing peace-keeping operations.
Several delegations sought clarifications on how Ukraine would deal with its arrears, how the dollar-amount changes in the two countries' dues would be matched and how that would be brought about without affecting other States. Statements were made by the representative of Mexico, Japan, Uganda, Singapore, Indonesia, United States, China, Poland, Romania, Chile, Latvia.
Speaking on the United Nations financial situation, the representative of Italy asked, on behalf of the European Union, whether the Secretariat had stopped borrowing from peace-keeping to finance the regular budget. The Union had insisted that the practice should be discontinued at a recent meeting of the high-Level working group on the United Nations financial situation. The Secretariat should give updates on the United Nations cash-flow forecast for both types of budgets.
The Committee was informed that the Under-Secretary-General for Administration and Management, Joseph E. Connor, would address it on Tuesday, 2 April.
The Committee will meet again at 10 a.m. Monday, 1 April, to consider the financing of United Nations missions in the former Yugoslavia.
Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this morning to consider administrative and budgetary aspects of peace-keeping operations, under which it would discuss Ukraine's request to be relocated to a group of Member States that are charged lower rates of peace-keeping assessments.
The Committee had before it a note verbale dated 27 September 1995 from the Permanent Mission of Ukraine addressed to the Secretary-General (document A/50/502) transmitting a letter from that country's President, Leonid Kuchma.
The letter states that Ukraine's arrears of $237.5 million are due to an outdated system of apportioning United Nations expenses, which charges the State three times its capacity to pay. Ukraine has suffered more than any other country from the redistribution of the excessive rate of assessment of the former Soviet Union. The action has entailed an unprecedented 50 per cent rise in its assessment to the regular budget for 1993 to 1994. Ukraine has submitted a request that its peace-keeping dues be made to conform with its actual economic and financial resources but no adequate solution to its problem has been found.
Ukraine, the President said, faces a difficult economic situation and is the first country to renounce nuclear weapons, having ratified the Treaty on the Non-Proliferation of Nuclear Weapons. Implementing the Treaty requires considerable costs. It must also spend large sums to eliminate the effects of the Chernobyl nuclear disaster and to decommission the power plant. Ukraine incurs losses due to the sanctions imposed on the Federal Republic of Yugoslavia. Therefore, it is not able to pay its outstanding dues because of conditions beyond its control. Since its independence, the State has paid nearly $30 million to the Organization. If its assessment rates for the regular and peace-keeping budgets have corresponded to its capacity to pay, the $30 million would have been enough to place the country among those who paid up their dues on time. It should be placed in the group of "economically less developed Member States" in the special scheme for apportioning peace- keeping costs.
[On 11 December 1973, the Assembly adopted resolution 3101 (XXXVIII) which divided the United Nations membership into four groups for apportioning peace-keeping expenses. Those in group (d) are economically less developed Member States that were specifically named and would pay 10 per cent of their regular budget assessment rates. Countries in group (c) are economically less developed Member States, which would pay 20 per cent. Group (b) contains specifically named economically developed States that are not permanent members of the Council and would pay 100 per cent. In group (a) are the permanent Security Council members which would pay 100 per cent plus what is left unapportioned. The scheme continues to be applied, with changes to the composition of the four groups.]
Also before the Committee is a draft decision on relocating Ukraine (document A/C.5/50/L.9), submitted by that country, which would have the Assembly decide, on an ad hoc basis, to include Ukraine in the group of States set out in group (c) for sharing out peace-keeping costs and calculate its
dues accordingly.
A draft resolution on relocating Ukraine (document A/C.5/50/L/32), submitted by Greece and Ukraine, would welcome Greece's decision to reclassify itself from group (c) to (b). I would then decide, on an ad hoc basis, to apportion Greece's dues on the proportion determined by the scale of assessments in the following manner: 35 per cent as from 1 July 1996, 55 per cent in 1997, 75 per cent in 1998, 95 per cent in 1999 and 100 per cent in 2000 and subsequent years.
Then, the Assembly would being Ukraine's transition to group (c) as long as the dollar cuts in its dues as from 1 July 1996 will be equal to the additional dollar amounts Greece will be charged as it switches to group (b). The Assembly would note that the decision would not result in any change in the assessments of other Member States.
Ukraine is assessed at 1.1400 per cent for the regular budget and 1.1438 per cent for peace-keeping in 1996. If it is moved to group (c), it will be assessed at about a fifth of its regular budget rate. Greece, assessed at 0.3800 per cent for the regular budget and 0.0763 per cent for peace-keeping, will be charged 100 per cent in group (b).
Statements
ANATOLI M. ZLENKO (Ukraine), introduced the draft resolution on the relocation of Ukraine. He said Greece's decision to increase its contribution to the peace-keeping budget by its voluntary relocation to group (b) of the peace-keeping scale of assessments was a good example of political commitment to resolve the Organization's financial problems. The decision to change groups was taken in favour of long expected solutions to the Ukraine's problem of its relocation to group (c) of the scale. The generous act signified the dynamic friendly relations developing between the two Member States. Ukraine's concern for its present placement on the scale had been introduced three years ago. His country wanted a prompt decision on the matter.
Greece's decision had opened a new option for Ukraine, he continued. Member States should consider positively the possibility of simultaneous gradual transition of Ukraine towards group (c). The transition to group (c) would be performed on a step-by-step basis and would have no financial implications for other Member States. The proposal envisaged that the reduction in the United States dollar amounts to be assessed on Ukraine, beginning 1 July should be equal to the additional United States dollar amounts assessed on Greece. Similar arrangements were already in place and were valid and financially neutral. Ukraine's transition would not be completed until the year 2000.
Recalling the history of the Ukraine's placement in group (b), he said that it was a result of its previous membership in the Soviet Union. Since Ukraine's independence and, following the solution of the similar problem for Belarus, Ukraine remained the only State from among the former Soviet republics, as well as the only Eastern European State, which still belonged to group (b). It would not be an exaggeration to say that Ukraine's considerable
arrears to the United Nations was a direct consequence of the tardiness in relocating it into group (c). The adoption of the draft resolution would help to speed up finalization of the relocation process.
VASSILIS KASKARELIS (Greece) said that considering the current United Nations financial crisis and the Secretary-General's appeals, his Government had voluntarily decided to raise its annual contributions to peace-keeping missions. The decision would move Greece from group (c) to group (b) of countries contributing to peace-keeping budgets at the same rate as for the regular budget. The relocation should be gradual since it would create a 500 per cent jump in his country's peace-keeping dues and in order to minimize the effects on its economy. Even though the 1996 national budget had not provided for the increase, Greece had decided that as from 1 July, it could be assessed for peace-keeping at 35 per cent of its regular budget rate, instead of the current 20 per cent. That rate would increase to 55 per cent in 1997, 75 per cent in 1998, 95 per cent in 1999 and 100 per cent in 2000 and beyond. Greece had been in group (c) since the adoption of the special scale for peace- keeping by the Assembly in resolution 3101 (28) of December 1973.
He said that in considering its move to group (b), Greece had borne in mind the need to act on Ukraine's request to be moved to group (c). He expressed the wish that the relation of Greece to Group (b) would help solve Ukraine's problem as long as the cuts in Ukraine's assessments would be gradual and would match the increases in Greece's. The initiative should be followed by other Member States as a short-term measure to help the Organization through its crisis. Spain and Portugal had already done so. He was ready to work for more equitable sharing of peace-keeping dues.
RENATA ARCHINI (Italy), also speaking for the European Union, expressed the Union's satisfaction with the action of Greece. The decision to raise its dues to peace-keeping missions had followed the precedents set by Spain in 1989 and Portugal in 1995. Those had made it possible to relocate some other States from group (b) to (c). The Union stressed the need to overhaul the outdated grouping scheme for assessing peace-keeping operations. Greece's decision should facilitate discussions on the issue in the working group on the United Nations financial situation.
MARTHA PENA (Mexico), noting that the draft text had been submitted today, said she had to await instructions from her capital. She had noticed that no informal consultations had been scheduled to deal with the matter. The draft resolution had been the result of consultations between the concerned Member States and four Permanent Members of the Security Council. However, it was the custom that all draft resolutions presented in the Fifth Committee should be the result of consultations among all Member States. She called on the Committee to hold informal consultations on the matter before any decisions were taken.
FUMIAKI TOYA (Japan) welcomed Greece's decision to move to group (c). He was pleased that the formula mentioned in the draft text would be in Ukraine's favour.
NESTER ODAGO-JALAMAYO (Uganda) said Greece's decision was a positive
step. Although he was sympathetic to Ukraine's situation, it should be stressed that the procedure should not transfer any extra costs to other Member States. The move should not become a precedent to other Member States. He asked for more detail on how Ukraine would deal with its arrears to the Organization.
HO TONG YEN (Singapore), welcoming Greece's movement from group (c) to (b), said he was puzzled by some of the draft's provisions. Consultations should be held to study the draft before action was taken on it.
PRAYONO ATIYANTO (Indonesia) reserved his right to speak on the question during informal consultations.
WILLLIAM GRANT (United States) commended Greece's decision to change groups. However, he was concerned with small, piecemeal changes to the special scale for peace-keeping operations. There was an urgent need to correct the scale. The high-level working group on the financial situation should be able to work on that issue soon. The application of the draft should be cost-neutral.
ZHANG WANHAI (China), welcoming Greece's decision, said some of the draft's provisions were quite puzzling. More time should be given to study the text. He asked how the rate changes could be made to correspond with each other and how they would be made in a way that would avoid affecting the rates of other States. Those questions should be explained by the Secretariat in informal consultations.
JAN JAREMCZUK (Poland) welcomed the decision of Greece to move from group (c) to (b), enabling Ukraine to move in the opposite direction.
DORIAN MIHAI (Romania), commending Greece's decision, associated himself with the statement by the Italian representative on behalf of the European Union.
FERNANDO VARELA (Chile) congratulated Greece for its move. He was happy that Ukraine's rate would be cut gradually between now and the year 2000. The special scale for peace-keeping missions should be institutionalized to reflect the shared but differentiated responsibilities of Member States to peace-keeping. He sought more information on the technical aspects of the draft.
ULDIS BLUKIS (Latvia) commended Greece's decision. The adoption of the resolution should not prejudice the placement of other countries on the peace-keeping scale of assessments.
ERICH VILCHEZ ASHER (Nicaragua), Committee Chairman, said the Committee would hold informal consultations on the matter.
Ms. ARCHINI (Italy), speaking on behalf of the European Union, reminded the Committee that at the end of the Assembly's recent regular session, some troop-contributing States had raised the question of borrowing from the peace- keeping account to sustain regular budget activities. They had made it clear
that such actions were unwarranted and inconsistent with established guidelines. The first priority of such funds must be the reimbursement of troop-contributing States. They had been effectively keeping both budgets afloat through their willingness to accept long delays in reimbursements which were due to them.
In the February session of the high-level working group on the Organization's financial situation, Under-Secretary-General Joseph Connor, had said that the Secretary-General would not resort to such internal borrowing without consulting Member States, she said. At present, the regular budget still owed money to the peace-keeping budget. Member States had insisted at that time that the practice should cease immediately. She called on the Secretariat to confirm if the situation had been regularized. The Committee should be provided with an updated forecast of the cash flow of both budgets for the remainder of 1996 before the end of the current resumed session or at the next meeting of the high-level working group.
Mr. VILCHEZ ASHER (Nicaragua), Committee Chairman, said the Under- Secretary-General for Administration and Management would address the issue in the Committee next Tuesday.
Mr. A JAREMCZUK (Poland) asked about a press report that the Secretariat would submit a report on cutting 1,00O posts.
Mr. VILCHEZ ASHER (Nicaragua), Committee Chairman, said Member States would have an opportunity to obtain more information on such matters when Mr. Connor addressed the Committee on Tuesday.
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